The Danish energy group Ørsted has decided to cancel the development of the Ocean Wind 1 (1,100 MW) and Ocean Wind 2 (1,148 MW) offshore wind projects in the US State of New Jersey. Ørsted said that the cancellation of the projects is a consequence of additional supplier delays further impacting the project schedule and leading to an additional significant project delay. Ørsted also mentioned tax credit monetisation and the timing and likelihood of final construction permits to explain the discontinuation of Ocean Wind 1 and 2. Finally, higher long-dated US interest rates have also degraded the business case.
Despite this cancellation, Ørsted has taken a final investment decision (FID) on the 704 MW Revolution Wind offshore wind project, located in off the US States of Connecticut and Rhode Island, and which is owned in partnership with Eversource (50% each). Onshore construction has begun on the project, while offshore construction will start in 2024, with the project expected to be completed in 2025.